The collapse of Silicon Valley Bank has sparked concerns about a potential worldwide financial crisis.
Credit Suisse, one of Europe’s largest banks, is facing funding concerns, causing financial markets to shake.
The Dow dropped over 700 points, but later recovered about half of those losses.
Credit rating firms have cut First Republic Bank to junk status, and the stocks of the big four US banks also took a hit.
The collapse of Silicon Valley Bank in the US has flooded larger US banks with new deposits.
Concerns about the safety of deposits have arisen, but according to Fordham law corporate bankruptcy Professor Richard Squire, the average investor is safe if their accounts don’t exceed the FDIC Insurance limit of $250,000.
Lawmakers are calling for Silicon Valley Bank executives to be held accountable, and legislation has been introduced to claw back bonuses or profits earned from failing banks within 60 days of their collapse.
